Wednesday, April 21, 2010

The Liberal Media

Propaganda



Let The Sun Shine In......

Secret prison revealed in Baghdad


Forces under the office of Prime Minister Maliki held hundreds of Sunni men at the facility. The U.S. fears that the news will stoke instability.

By Ned Parker
April 19, 2010

Reporting from Baghdad
Hundreds of Sunni men disappeared for months into a secret Baghdad prison under the jurisdiction of Prime Minister Nouri Maliki's military office, where many were routinely tortured until the country's Human Rights Ministry gained access to the facility, Iraqi officials say.

The men were detained by the Iraqi army in October in sweeps targeting Sunni groups in Nineveh province, a stronghold of the group Al Qaeda in Iraq and other militants in the north. The provincial governor alleged at the time that ordinary citizens had been detained as well, often without a warrant.

Worried that courts would order the detainees' release, security forces obtained a court order and transferred them to Baghdad, where they were held in isolation. Human rights officials learned of the facility in March from family members searching for missing relatives.

Revelation of the secret prison could worsen tensions at a highly sensitive moment in Iraq. As U.S. troops are withdrawing, Maliki, a Shiite Muslim, and other political officials are negotiating the formation of a new government. Including minority Sunni Arabs is considered by many to be key to preventing a return of widespread sectarian violence. Already there has been an increase in attacks by Al Qaeda in Iraq, a Sunni extremist group.

The alleged brutal treatment of prisoners at the facility raised concerns that the country could drift back to its authoritarian past.

Commanders initially resisted efforts to inspect the prison but relented and allowed visits by two teams of inspectors, including Human Rights Minister Wijdan Salim. Inspectors said they found that the 431 prisoners had been subjected to appalling conditions and quoted prisoners as saying that one of them, a former colonel in President Saddam Hussein's army, had died in January as a result of torture.

"More than 100 were tortured. There were a lot of marks on their bodies," said an Iraqi official familiar with the inspections. "They beat people, they used electricity. They suffocated them with plastic bags, and different methods."

An internal U.S. Embassy report quotes Salim as saying that prisoners had told her they were handcuffed for three to four hours at a time in stress positions or sodomized.

"One prisoner told her that he had been raped on a daily basis, another showed her his undergarments, which were entirely bloodstained," the memo reads.

Some described guards extorting as much as $1,000 from prisoners who wanted to phone their families, the memo said.

Maliki vowed to shut down the prison and ordered the arrest of the officers working there after Salim presented him with a report this month. Since then, 75 detainees have been freed and an additional 275 transferred to regular jails, Iraqi officials said. Maliki said in an interview that he had been unaware of the abuses. He said the prisoners had been sent to Baghdad because of concerns about corruption in Mosul.

"The prime minister cannot be responsible for all the behavior of his soldiers and staff," said Salim, praising Maliki's willingness to root out abuses. Salim, a Chaldean Christian, ran for parliament in last month's elections on Maliki's Shiite-dominated list.

Maliki defended his use of special prisons and an elite military force that answers only to him; his supporters say he has had no choice because of Iraq's precarious security situation. Maliki told The Times that he was committed to stamping out torture -- which he blamed on his enemies.

"Our reforms continue, and we have the Human Rights Ministry to monitor this," he said. "We will hold accountable anybody who was proven involved in such acts."

But Maliki's critics say the network of special military units with their own investigative judges and interrogators are a threat to Iraq's fragile democracy. They question how Maliki could not have known what was going on at the facility, and say that regardless, he is responsible for what happened there.

"The prison is Maliki's becauseit's not under the Ministry of Defense, the Ministry of Justice or Ministry of Interior officially," said one Iraqi security official, who spoke on condition of anonymity because of the sensitivity of the topic.

The revelations echoed those at the beginning of Iraq's sectarian war. In late 2005, the U.S. military found a secret prison in an Interior Ministry bunker where Sunnis rounded up in police sweeps were held.

The latest episode, the U.S. Embassy report warns, could exacerbate tensions between Iraq's Shiite majority and Sunnis even with the facility closed.

U.S. troops already have pulled out of Iraq's cities, and Iraqi officials say U.S. influence is diminishing as the Americans focus on ending their military presence. The number of U.S. troops in Iraq is scheduled to drop by about half, to 50,000, by the end of August.

The embassy report cautions that "disclosure of a secret prison in which Sunni Arabs were systematically tortured would not only become an international embarrassment, but would also likely compromise the prime minister's ability to put together a viable government coalition with him at the helm."

Maliki's main political rival, Iyad Allawi, narrowly defeated him in parliamentary elections last month. Allawi, a secular Shiite, drew on dissatisfaction in Sunni regions around central Iraq. In the interview, Maliki invited Allawi to join him in forming a new government. But news of a secret prison that falls under the jurisdiction of the prime minister's military office could make it difficult for him to gain any Sunni partners.

The controversy over the secret prison, located at the Old Muthanna airport in west Baghdad, has also pushed Maliki to begin relinquishing control of two other detention facilities at Camp Honor, a base in Baghdad's Green Zone. The base belongs to the Baghdad Brigade and the Counter-Terrorism Force, elite units that report to the prime minister and are responsible for holding high-level suspects.

Families and lawyers say they find it nearly impossible to visit the Camp Honor facilities. The Justice Ministry is now assuming supervision of the Green Zone jails, although Maliki's offices will continue to command directly the military units.

The 431 detainees brought down from Nineveh were initially held at Camp Honor. Interrogations began after they were transferred to the prison at the Old Muthanna airport.

According to the U.S. Embassy report and interviews with Iraqi officials, two separate investigative committees questioned the detainees and abused them. During the day, there were interrogators from the Iraqi judiciary. In the late afternoon they came from the Baghdad Brigade.

The embassy report says that at least four of the investigators from the Baghdad Brigade are believed to have been indicted for torture in 2006. The charges against them at the time included selling Sunni Arab detainees held at a national police facility to Shiite militias to be killed.

In December, the Human Rights Ministry asked the judiciary to investigate Baghdad Brigade interrogators over allegations of torture at Camp Honor, but hasn't received an answer, Iraqi officials said.

With the secret facility at the old airport being shut down, and both Maliki and Salim, the human rights minister, hailing what they regard as progress, some Iraqis with knowledge of the security apparatus say they are worried that nothing will really change.

One former lawmaker with great knowledge of the prime minister's security offices called for radical change in the next government. "This is the beginning. We have to hold people accountable," the former lawmaker said. "It's a coverup of torture."

ned.parker@latimes.com


Let The Sun Shine In......

Poll Confirms: Tea Party Movement a Greater Threat to Republicans Than to Democrats


New Demographic Survey Finds Tea Party Movement Is Essentially the GOP's Voter Base: Affluent, Overwhelmingly White, Predominantly Male, Mostly Middle-Aged and Older, Fiercely Conservative -- and, At Only 18 Percent of the Electorate, More Likely to Wreak Havoc in the Spring Republican Primaries Than in the November General Election



Tea Party protesters march through Washington, D.C. last September. Strong anecdotal evidence, based on attendance at its rallies across the country, that the Tea Party movement does not represent a broad demographic cross-section of the American electorate were confirmed last week by a new survey of the movement by The New York Times and CBS News that found that Tea Party supporters are overwhelmingly white, predominantly male, middle-aged and older, fiercely conservative and heavily Republican -- essentially the GOP's electoral base. The survey also found that the Tea Party movement, which comprises less than a fifth of the total nationwide electorate (18 percent), is economically more affluent than the general U.S. population. (Photo: Aaron Wiener/The Washington Independent)


(Posted 5:00 a.m. EDT Tuesday, April 20, 2010)

By SKEETER SANDERS


Who's afraid of the big, bad Tea Party movement?

If you guessed the Democrats, you'd be dead wrong. On the contrary, it's the Republicans who need to be worried.

A new demographic survey of the Tea Party movement released last week by The New York Times and CBS News confirms what many observers of Tea Party rallies have said anecdotally about the movement: That it does not represent a broad cross-section of the American electorate, let alone a majority.

To the contrary, the movement more closely resembles the electoral base of today's Republican Party: Overwhelmingly white (89 percent), predominantly male (59 percent), mostly middle-aged and older (75 percent) and fiercely conservative (73 percent).

And while a separate poll by the Pew Center for the People and the Press released Monday shows that 80 percent of Americans overall are highly critical of government, a clear partisan divide exists over whether the public considers the government to be a threat to them.

More Republicans (30 percent) than Democrats (nine percent) and independents (25 percent) are angry with government, the Pew survey found, with 43 percent of Republicans, 18 percent of Democrats and 33 percent of independents believe the government is a threat to them.

Significantly, the Pew study found, independents who lean Republican are far more hostile toward government (37 percent angry, 50 percent feeling threatened) than independents who lean Democratic (15 percent angry, 21 percent feeling threatened).

Tea Party supporters are by far the most angry and hostile toward government, with 43 percent of Tea Party supporters angry and a stunning 57 percent of them feeling threatened.

REPUBLICANS IN CONGRESS FARING WORSE THAN DEMOCRATS -- BUT NOT BY MUCH

Chief reasons for the ill feelings are economic fears wrought by the recession and high unemployment and frustration with the partisan gridlock in Washington -- the latter of which has resulted in record-high negative ratings for Congress.

Only 40 percent of Democrats have faith in their elected representatives in Congress, the lowest positive rating by the majority party in the history of the Pew survey. But the GOP fares worse, with only 37 percent of Republicans expressing faith in their congressional representatives.

This is bad news for the GOP, for it means that the Tea Party movement, rather than pose a threat to Democrats in next fall's midterm elections, is more likely to wreak havoc in the upcoming Republican primaries this spring -- most of which are closed to independent voters.

The likely result is a Republican Party going into the November election saddled with hard-line right-wing nominees sure, particularly in Senate races, to turn off moderate voters -- whose support is absolutely vital in order for the minority party to win back control of Congress.

Already, two GOP stalwarts -- Florida Governor Charlie Crist and Arizona Senator John McCain -- are in serious danger of suffering humiliating primary defeats at the hands of Tea Party-backed insurgents.

Crist has fallen behind conservative Florida House speaker Marco Rubio in the GOP primary and is reported to be seriously considering running as an independent in November. McCain -- the 2008 GOP presidential nominee -- is fighting for his political life against right-wing radio talk-show host J.D. Hayworth, with a new Rasmussen Poll showing McCain leading Hayworth by only five points, 47-42 percent, down from a 48-41 percent lead in March.

SCORES OF TEA PARTIERS MOUNTING STIFF PRIMARY CHALLENGES TO GOP REGULARS

Crist and McCain are far from alone. Scores of other GOP incumbents and party establishment-backed Republican candidates in open races are also confronting right-wing Tea Party-backed primary challengers.

In Kentucky, Tea Party-backed candidate Rand Paul, the 47-year-old son of Representative Ron Paul (R-Texas), is favored to win the state's May 18 GOP Senate primary against GOP establishment candidate Trey Grayson, the Kentucky secretary of state. "There's a Tea Party tidal wave coming, and when it comes, it's going to sweep a lot of people out," Grayson told the McClatchy Newspapers.

In the Democratic primary, state Attorney General Jack Conway is battling Lieutenant Governor Daniel Mongiardo. Recent polls show Conway and Mongiardo running neck and neck, while Paul holds a commanding 15-point lead over Grayson.

State Republican leaders fear that a primary victory by Paul -- who's considerably to the right of Grayson -- could lead to a loss of the Senate seat now held by the retiring Jim Bunning to the Democratic nominee in the fall election. Bunning has endorsed Paul. Grayson was endorsed by former Vice President Dick Cheney as "the real conservative" in the race.

Even Fox News -- now embroiled in a conflict-of-interest scandal involving talk-show host Sean Hannity's open promotion of a Tea Party event he planned to participate in, only to pull out at the last minute on the orders of Fox News executives -- has, ironically, taken note of the growing Tea Party threat to the Republicans.

Appearing on Glenn Beck's program in March, former Bush political guru Karl Rove said that "The Republican Party, like any party that doesn't control the White House, will not have a single voice or a single leader until the 2012 presidential election, and frankly, I don't want one person [in that position] now."

Beck expressed his fear that the Tea Party movement could ultimately coalesce into a third major political party in its own right -- at the GOP's expense. Noting that independents now outnumber both Democrats and Republicans, "I think that having a third party -- it could be a nightmare [for the Republicans]," he said. "There are so many conservatives who are saying 'Please, Republicans, get your stuff together!'"

SURVEY FINDS NEAR-TOTAL LACK OF DIVERSITY IN TEA PARTY MOVEMENT

Only one percent of Tea Party members are African-American, Times/CBS News survey found -- a figure much lower than the four percent of blacks who identify as Republicans. Ditto for Asian-Americans. The survey did not specifically identify Latinos in the movement, instead listing six percent of Tea Party members as "other."

Given the incendiary anti-Latino and anti-immigrant rhetoric by former Representative Tom Tancredo (R-Colorado) at the recent Tea Party convention in Nashville (Not to mention a fiercely personal attack by Tancredo on President Obama at a Tea Party rally in South Carolina that's been roundly condemned as racist) -- as well as extremely inflammatory rhetoric and signs at other Tea Party protests in recent months -- it's easy to see why blacks and Latinos are, for the most part, shunning the movement like the plague.

More than a third of Tea Party members hail from the Deep South -- where support for the GOP and opposition to Obama is strongest. Not surprisingly, Tea Partiers are far more hostile toward the president than the electorate as a whole. Only seven percent of Tea Party supporters approve of the president's job performance (compared to 50 percent of voters overall), while a whopping 88 percent of Tea Partiers disapprove (compared to 40 percent of voters overall).

SURVEY REVEALS SHARP CLASS DIVIDE BETWEEN TEA PARTIERS, VOTERS IN GENERAL

Significantly, the survey found that Tea Party members are more affluent economically than the nation as a whole, with more than half earning more than $50,000 a year and a fifth earning more than $100,000 a year. Twelve percent of Tea Party supporters earn more than $250,000 a year -- precisely the income brackets whose taxes are going up, while everyone earning less than that are seeing their taxes go down.

In sharp contrast, the survey found, voters in general were considerably less affluent than Tea Party supporters. While 35 percent of Tea Partiers earned less than $50,000 a year, nearly half of voters in general (48 percent) fall into that category. Only 25 percent of voters in general earn more than $100,000 a year compared to the 32 percent of Tea Partiers in that category.

The Times/CBS News survey found several telltale signs of class bias: While 54 percent of voters in general said that raising taxes on those earning more than $250,000 a year was a good idea, a whopping 80 percent of Tea Party supporters said it was a bad idea.

And while voters in general were evenly divided on whether the Obama administration favors the poor or treats all classes equally (27 percent each), Tea Party supporters were quite adamant (56 percent) in their belief that the administration favored the poor. Only nine percent of Tea Party supporters felt the administration was treating all classes equally.

OTHER SHARP DIFFERENCES BETWEEN TEA PARTIERS, GENERAL ELECTORATE

The figures stand in sharp contrast to voters in general in the Times/CBS News poll, 77 percent of whom identify as white, 12 percent black, three percent Asian and seven percent "other" (presumably Latino).

Fifty-one percent of voters in general are women, while 49 percent are men. In terms of age, the general electorate is evenly split, 50-50, between those under 45 and those over 45.

While 73 percent of Tea Party supporters identify as conservative, only 34 percent of voters in general do. Thirty-eight percent of voters in general identify themselves as moderate (compared to only 20 percent of Tea Party supporters) and 20 percent of voters in general identify as liberal (compared to only four percent of Tea Party supporters).

At Tea Party rallies across the country, activists have boldly asserted that their movement represents "the majority of the American people." But the Times/CBS News survey shows that only 18 percent of Americans identify with the Tea Party movement.

And with Tea Party supporters coming largely from the ranks of Republicans -- who themselves constitute only 23 percent of the electorate -- it's difficult to see how this movement can pose a threat to the Democrats in November, especially if, for the rest of this year, the economy picks up and joblessness goes down.

# # #

Volume V, Number 18
Copyright 2010, Skeeter Sanders. All rights reserved.



Let The Sun Shine In......

Could this be the end of the Republican Party

I thought so, for awhile. Thing is, one can always count on the Democrats tro save them, every time.

MARC PERKEL FOR BUZZFLASH

Republicans are going all in on anger this year and betting everything on anger alone. This is very risky because as the economy recovers and things keep getting better the voters might not be as angry in November as they are now. Republicans also have the burden that their anger won't be directed back at them as it has been in the last 2 elections.

Republicans have stood on the sidelines refusing to be part of any solution to our country's problems. If the anger card doesn't work this year it might be the end of the Republican Party. Perhaps Republicans should try to accomplish something positive and become part of the solution before the election day so that don't have to bet the election on an empty hand.

MARC PERKEL FOR BUZZFLASH

Let The Sun Shine In......

U.S. political system



Let The Sun Shine In......

Tuesday, April 20, 2010

Financial Reform Goes Full Tilt

Monday, April 19, 2010

Democrats Call Out GOP Leaders On Wall Street Dealings 

With the Senate planning to begin debate this week on the largest regulatory overhaul of the financial industry since the Great Depression, Democrats are demanding that GOP divulge details of "backroom negotiations" with Wall Street executives.

Advocates of reform, both inside and outside the Senate, are pushing the chamber to adopt the strongest possible measures to regulate banks and financial institutions so as to give consumers the most protection possible.

"With the announcement that the Senate is now scheduled to begin floor debate on a comprehensive financial regulatory reform package this week, we urge Senators to enact real reform to protect Americans and our financial system," says John Morton, managing director of the Pew Economic Policy Group, a division of The Pew Charitable Trusts that promotes policies and practices that strengthen the U.S. economy. "Senators from both sides of the aisle can and should work together to pass a final bill that: creates an early warning system; ends 'Too Big To Fail' and bailouts; increases transparency in markets; and provides meaningful consumer protections. Financial reform must significantly reduce the likelihood of future crises and ensure that, should a crisis occur, the American taxpayer is not left covering the tab."

Sen. Bernie Sanders of Vermont, a left-leaning independent who led an unsuccessful campaign to deny Ben Bernanke a second term at the head of the Federal Reserve, outlined the four provisions that he thinks are needed provisions in a final financial reform bill.

Financial reform is another high priority for President Obama, and the legislation that the Senate will vote on is a package put together by Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee.

“Disgust at Wall Street is profound. The American people want us to change in a very profound way how Wall Street functions, and Congress must deliver,” Sanders says, adding that he would offer amendments to the Dodd bill.

Although Dodd had worked with key GOP senators in crafting his reform bill, including Sen. Richard Shelby of Alabama, the ranking Republican on Banking, no Republicans have thus far been willing to support the Senate bill.

Senate Majority Leader Harry Reid, however, cited public comments by Shelby who has indicated that Republicans could agree on 70 to 80 percent of the Dodd proposal.

“Holding big banks accountable for the enormous economic crisis of recent years is about more than dollars and cents. It is about fairness and justice. It’s also about learning lessons from the mistakes of the past so we are not bound to repeat them,” Reid says in remarks Monday on the Senate floor.

The Senate majority leader also notes that federal regulators last week began legal action against the firm Goldman Sachs for allegedly illegal, fraudulent dealings that contributed to the 2008 financial meltdown.

Reid and his spokesman each called out Senate Republican Leader Mitch McConnell and Sen. John Cornyn (R-Texas) for "secret" meetings with Wall Street executives eager to derail the new reforms. Cornyn is chairman of the Senate GOP campaign operation. Republicans reportedly for months have been seeking campaign contributions from the financial industry in exchange for working to kill the reform legislation.

“Republicans also refuse to admit whose side they’re on,” Reid says. “Earlier this month, the Republican Leader and the head of the Republicans’ Senate campaign committee went to Wall Street. They met with the bankers and hedge-fund managers who benefited more than anyone from the broken system and are trying harder than anyone to stop us from fixing it.”

In a separate statement and citing television news interviews (video), Reid spokesman Jim Manley says McConnell and Cornyn refuse to disclose just what they have said in their talks with bankers behind closed doors. Prior to dissatisfaction due to financial reform, Wall Street executives generally gave more in recent years to Democrats.

“Senators McConnell and Cornyn should immediately reveal what they discussed earlier this month during secret, closed-door meeting with Wall Street executives in New York City,” Manley says. “Years of greed and excess on Wall Street cost 8 million jobs and trillions in wealth for middle-class families and small businesses. Since Republicans appear to be conducting backroom negotiations with these same people who took our economy to the brink of collapse, the public deserves to know what secret deals and carve-outs Republicans are offering Wall Street executives in exchange for their support.”
Let The Sun Shine In......

Wake-up Call

Resist the Corporate State

Defense Spending Is Much Greater than You Think: more than $1Trillion a year

Adding this… to the previous all-agency total, the grand total comes to $1,027.8 billion, which is 61.5 percent greater than the Pentagon’s outlays alone.

That’s right: more than $1TRILLION a year.

By Robert Higgs on Apr 17, 2010  The Independent Institute

When President Obama presented his budget recently for fiscal year 2011, he proposed that the Pentagon’s outlays be increased by about 4.5 percent beyond its estimated outlays in fiscal 2010, to a total of almost $719 billion. Although many Americans regard this enormous sum as excessive, few appreciate that the total amount of all defense-related spending greatly exceeds the amount budgeted for the Department of Defense.

In fiscal year 2009, which ended last September, the Pentagon spent $636.5 billion. Lodged elsewhere in the budget, however, other lines identify funding that serves defense purposes just as surely as—sometimes even more surely than—the money allocated to the Department of Defense. On occasion, commentators take note of some of these additional defense-related budget items, such as the Department of Energy’s nuclear-weapons program, but many such items, including some extremely large ones, remain generally unrecognized.

Since the creation of the Department of Homeland Security, many observers probably would agree that its budget ought to be included in any complete accounting of defense costs. After all, the homeland is what most of us want the government to defend in the first place.

Other agencies also spend money in pursuit of homeland security. The Justice Department, for example, includes the Federal Bureau of Investigation, which devotes substantial resources to an anti-terrorist program. The Department of the Treasury claims to have “worked closely with the Departments of State and Justice and the intelligence community to disrupt targets related to al Qaeda, Hizballah, Jemaah Islamiyah, as well as to disrupt state sponsorship of terror.”

Much, if not all, of the budget for the Department of State and for international assistance programs ought to be classified as defense-related, too. In this case, the money serves to buy off potential enemies and to reward friendly governments who assist U.S. efforts to abate perceived threats. About $5 billion of annual U.S. foreign aid currently takes the form of “foreign military financing,” and even funds placed under the rubric of economic development may serve defense-related purposes indirectly. Money is fungible, and the receipt of foreign assistance for economic-development projects allows allied governments to divert other funds to police, intelligence, and military purposes.

Two big budget items represent the current cost of defense goods and services obtained in the past. The Department of Veterans Affairs, which is authorized to spend about $124 billion in the current fiscal year, falls in this category. Likewise, a great deal of the government’s interest expense on publicly held debt represents the current cost of defense outlays financed in the past by borrowing from the public.

To estimate the size of the entire de facto defense budget, I gathered data for fiscal 2009, the most recently completed fiscal year, for which data on actual outlays are now available. In that year, the Department of Defense itself spent $636.5 billion. Defense-related parts of the Department of Energy budget added $16.7 billion. The Department of Homeland Security spent $51.7 billion. The Department of State and international assistance programs laid out $36.3 billion for activities arguably related to defense purposes either directly or indirectly. The Department of Veterans Affairs had outlays of $95.5 billion. The Department of the Treasury, which funds the lion’s share of military retirement costs through its support of the little-known Military Retirement Fund, added $54.9 billion. A large part of the National Aeronautics and Space Administration’s outlays ought to be regarded as defense-related, if only indirectly so. When all of these other parts of the budget are added to the budget for the Pentagon itself, they increase the fiscal 2009 total by nearly half again, to $901.5 billion.

Finding out how much of the government’s net interest payments on the publicly held national debt ought to be attributed to past debt-funded defense spending requires a considerable amount of calculation. I added up all past deficits (minus surpluses) since 1916 (when the debt was nearly zero), prorated according to each year’s ratio of narrowly defined national security spending—military, veterans, and international affairs—to total federal spending, expressing everything in dollars of constant purchasing power. This sum is equal to 67.6 percent of the value of the national debt held by the public at the end of 2009. Therefore, I attribute that same percentage of the government’s net interest outlays in that year to past debt-financed defense spending. The total amount so attributed comes to $126.3 billion.

Adding this interest component to the previous all-agency total, the grand total comes to $1,027.8 billion, which is 61.5 percent greater than the Pentagon’s outlays alone.
In similar analyses I conducted previously for fiscal 2002 and for fiscal 2006, total defense-related spending was even greater relative to Pentagon spending alone – it was 73 percent greater in fiscal 2002 and 87 percent greater in fiscal 2006. In fiscal 2009, the ratio was held down in large part by the reduced cost of servicing the government’s debt, owing to the extremely low interest rates that prevailed on government securities. This situation cannot last much longer. As interest rates on the Treasury’s securities rise, so will the government’s cost of servicing the debt attributable to past debt-financed defense outlays.

For fiscal 2010, which is still in progress, the president’s budget estimates that the Pentagon’s spending will run more than $50 billion above the previous year’s total. Any supplemental appropriations made before September 30 will push the total for fiscal 2010 even farther above the trillion-dollar mark.

Although I have arrived at my conclusions honestly and carefully, I may have left out items that should have been included—the federal budget is a gargantuan, complex, and confusing collection of documents. If I have done so, however, the left-out items are not likely to be relatively large ones. (I have deliberately ignored some minor items, such as outlays for the Selective Service System, the National Defense Stockpile, and the anti-terrorist activities conducted by the FBI and the Treasury.

For now, however, the conclusion seems inescapable: the government is currently spending at a rate well in excess of $1 trillion per year for all defense-related purposes. Owing to the financial debacle and the ongoing recession, millions are out of work, millions are losing their homes, and private earnings remain well below their previous peak, but in the military-industrial complex, the gravy train speeds along the track faster and faster.

 National Security Outlays in Fiscal Year 2009
(billions of dollars)
Department of Defense 636.5
Department of Energy (nuclear weapons & environ. cleanup) 16.7
Department of State (plus intern. assistance) 36.3
Department of Veterans Affairs 95.5
Department of Homeland Security 51.7
Department of the Treasury (for Military Retirement Fund) 54.9
National Aeronautics & Space Administration (1/2 of total) 9.6
Net interest attributable to past debt-financed defense outlays 126.3
Total 1,027.5
Source: Author’s classifications and calculations; basic data from U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2011 and U.S. Bureau of the Census, Historical Statistics of the United States, Colonial Times to 1970.

Let The Sun Shine In......

Should Banksters go to jail

In a word; YES! Jail time is the only thing that will serve as a big stick with these people. That and humongous fines.....like enough to replenish the treasury.

BUZZFLASH DISCUSSION

The fallout from government's civil charges against Goldman Sachs has already begun. Still, it's not clear if this is the beginning of a wider attempt to seriously punish Wall Street for its obvious role in the recession or just a show for politics.

What do you think will happen following the Goldman suit? Will the Obama Administration be encouraged to move forward against the rest of Wall Street, either with charges or regulation? Or will old money prevail in preventing the kind of regulation that would stop this reckless behavior in the future and get any suits against them dropped?
Let us know in the comments below.

Let The Sun Shine In......

US strike could delay Iran nuclear program-Mullen

Reuters AlertNet 

Original article, Reuters AlertNet - US strike could delay Iran nuclear program-Mullen by Adam Entous:

NEW YORK, April 18 (Reuters) - The nation's top military officer said on Sunday that a U.S. strike against Iran would go "a long way" to delaying its nuclear program but that he considered doing so his "last option" right now.


This should scare anybody. Last options, amongst US military the past few decades, seem to be first options. The question is what happens should we bomb Iran, particularly if there is already fuel in the nuclear reactors? Should we be concerned if a resulting cloud should drift into Russia?


Seems we should be concerned about any such cloud drifting anywhere!

Every indication that I've read from neutral observers is that Iran does not have a bomb program. This should scare anybody, since the US seems to like attacking other countries on false pretenses. The drumbeats continue.

Let The Sun Shine In......

What’s Wrong with the Financial Reform Bill

Senate Banking Committee Chairman Christopher Dodd’s financial “reform” proposal (Barney Frank’s wasn’t much better) won’t change the nature of anything Wall Street does. Dodd’s needless watering down of a proposal to create a new Consumer Financial Protection Agency has been well-documented, so here is a list of 10 other problems Dodd’s bill will not fix:
via Speculating Banks Still Rule — Ten Ways Dems and Dodd Are Failing on Financial Reform | Economy | AlterNet.
Friend Nomi Prins, who in a former life worked for Goldman, this weekend sent along a link to an article in which she outlines the gaps in the current version of the financial regulatory reform bill. Given that the bill is sometimes being pitched as the answer to some of the problems underlined by the Goldman case, it’s a very sobering read.

My favorite is the halting, incomplete attempt at a rollback of the Gramm-Leach-Bliley Act, i.e. the pseudo-restoration of the Glass-Steagall Act known as the Volcker rule. Nomi writes:
2) It won’t reduce the economic danger from rampant, overleveraged trading activities. The bill would restrict certain banks from having proprietary trading operations (trading with their own capital) under the “Volcker rule,” but it’s full of problematic exemptions:

a) Banks that claim they trade on behalf of their customers (which they all say they do) escape the rule.

b) Banks that trade for “market-making” purposes (i.e. Goldman Sachs betting against its own clients) are home-free.

c) Banks aren’t required to itemize their trading operations to regulators, so they get to decide what they consider trading for their customers and what they consider proprietary. I wonder how that will work out.

Then of course there’s the treatment of hedge funds, also relevant given the business with John Paulson:
5) It won’t contain the risk to the shadow banking system from hedge funds, private equity firms and venture capital funds. Venture capital and private equity advisers still won’t have to register or report to the SEC, though hedge funds with over $100 million in assets will. There’s also no statutory definition of what actually constitutes a hedge fund, and the bill doesn’t close the tax loophole that allows fund managers to be taxed at the lower capital-gains tax rate of 15 percent, rather than the higher income tax rate of 34 percent. If it sounds crazy to you that the richest people in America are being taxed at the lowest rates, it is: the loophole cost taxpayers about $5 billion this year alone.
There is some good stuff in the bill, but it is riddled with loopholes. Far more important than the actual bill is the effort to actually enforce existing laws. While it is true that the near-complete absence of a regulatory structure to oversee derivatives trading is problematic, there is a lot the government could have done still, if it had wanted to, to prevent catastrophes like AIG and Lehman Brothers. The decision to take a whack at Goldman for this Paulson business is therefore the best news there’s been on this front…


Let The Sun Shine In......